The proposed resort would have included two championship golf courses, a five-star hotel, a golf academy, almost 1,000 holiday homes and 500 private houses.

Councillor Alistair Ross led the opposition to Trump among members of the group, saying: "There are a lot of quick profits to be made."

"Jobs are going to come into the area, but the money is not going to stay here. Trump doesn't need the houses. He wants the houses. I think we could get a much better deal."

Trump is considering his next step. The property billionaire's spokesman, George Sorial, complained the committee had "let down the people of Aberdeen and Aberdeenshire".

"This decision sends a message that if you want to do business, don't come to the north-east of Scotland," he added.

While Trump has the right to appeal, first to the council and then at a national level, Sorial hinted that the tycoon was now prepared to walk away.

He said: "Obviously we are very disappointed. We have other options elsewhere in the UK."

Trump's team had spent four years developing the plans. The resort, which was to be built on a 566-hectare site in Aberdeenshire, had divided locals on economic and environmental grounds.

Supporters of the plans claimed it would bring £60m a year to the Scottish economy and create 6,000 jobs.

But environmentalists and some local residents were vociferous in their criticism of the development.

They said the project would destroy part of a site of special scientific interest and worried about the potential impact on sand dunes.

The Scottish Wildlife Trust said the development would have destroyed "one of the top five dune habitats in Britain".

There were also questions about the need for 500 private houses, which did not form part of Aberdeenshire council's local plan.

A local fisherman, Michael Forbes, became the focal point of opposition in an increasingly personal battle with Trump.

His staunch refusal to sell his nine hectares of land needed for the development angered Trump, who described the piece of land as "disgusting".

Trump initially offered Forbes £350,000 then upped it to £450,000 with a salary of £50,000 a year for some unspecified job.

Forbes consistently refused.

The project has been close to Trump's heart. When he announced his intention to apply for permission four years ago, he said he would be doing it "in honour of my mother" who grew up in Stornoway, Scotland.

Initial plans for the site began modestly enough, before Trump got involved. The previous owner of the Menie estate, another US citizen, Tom Griffin, wanted to create a golf course connected to a country house hotel.

Trump's vision was far grander - one 18-hole course became two, alongside a 450-room hotel that would have been the largest single structure in Aberdeenshire.

Nearly 1,000 holiday flats were to rise seven or eight storeys high. Thirty-six villas would have lined the boulevards. Selling 500 houses within a gated community would have helped to fund the venture.

Trump can now appeal to the Scottish executive and have his plans go to a public inquiry.

"The housing and the golf course are non-negotiable for us, but we did compromise on other issues."